Lily Purnama

People's Business Credit (KUR) is a government program to increase Small, Micro, and Medium Enterprises (UMKM). Micro Business Loan (KUR) is a credit for financing productive business segment of micro, small, medium, and cooperative feasible but not yet bankable for working capital and / or investment credit through direct and indirect financing pattern (linkage) guaranteed by Lembaga Penjamin Kredit. This study aims to examine how the implementation of KUR distribution and its role in the empowerment of women. This research uses mixed methods method. The sample in this research was 71 respondents who were drawn using Taro Yamane formula with precision 0,1. The location of this research is PT. Bank Mandiri branch of Medan Iskandar Muda (Tbk). The results of this study show that the distribution system of KUR PT. Bank Mandiri branch of Medan Iskandar Muda (Tbk) through nine stages using the 5 C standard (Capital, Collateral, condition, character, capacity) as the implementation guideline. The results of the study of obtaining the KUR program have a good impact on the business development and personal debtor. This is because the survey system conducted on an ongoing basis by PT. Bank Mandiri branch of Medan Iskandar Muda (Tbk) forced the debtor to discipline in financial management.

An Empirical Examination of Financial Pattern of Infrastructure Sectors in India

Governments around the world have realized that development of infrastructure require huge capital and governments’ revenues are not adequate to develop the required infrastructure. Finance is an essential part of infrastructure development. Whether it is government, public or private sectors which undertake to develop infrastructure, they require different forms of finance. Understanding the financing patterns of companies is an empirical issue. This paper aims at ascertaining the financing patterns of infrastructure companies. We use the financial data of 306 Indian companies in different sectors in India and present the analysis of financing pattern for four sectors. Financing pattern of sample companies has been studied by using 20 different ratios. Result shows that the financing patterns in the construction, steel, cement and power sectors companies in India have used more debt, that too short term debt, to finance their assets as well the operations. Companies in most of these sectors have not been able to generate adequate revenues to service the debts. The result also shows that there is a significant difference in the financing pattern of different infrastructure sectors. The results of the study may be used by investors, policy makers, researchers. Further study may be undertaken to analyse the individual companies in each sector to know the financing pattern.

Time Series Analysis of Profitability : A Study of Selected Infrastructure Sector Companies in India

A nation's economic development has link with many sector groups. All the sector groups draw their basic facilities from the infrastructure sector. Infrastructure is needed for development of any country, roads, railways, power, telecom, education, water supply, sanitation constitute infrastructure. This paper deals profitability analysis of ten selected Indian infrastructure sector companies. The annual data of the selected companies is obtained from the Capital Line Database. Selected infrastructure companies for the analysis are Burnpur Cement, Dalmia Cement, Deccan Cement, Godrej Property, Mangalam Cement, Puravankara, Sagar Cements, Shah Alloys, Surya Roshni, Tata Steel. Further, Ratios calculation is related to Operating Profit Margin, Gross Profit Margin, Net Profit Margin, return on Assets, return on Shareholders’ funds, Assets Turnover, Fixed Assets Turnover, Shareholder Funds Turnover, Current Assets Turnover, Net Current Assets Turnover. Result shows that there is significant difference in the financing pattern of different sectors. Financing of each sector is unique, and they have to be handled uniquely.

Financing preference of listed small and medium enterprises (SMEs): evidence from NSE Emerge Platform in India

Purpose The study aims to empirically evaluate the effect of internal factors of small and medium enterprises (SMEs) on their financing choices. It also examines the financing practices of listed SMEs in India and finds out whether the financing patterns of listed SMEs follow the established theories of corporate finance. Design/methodology/approach For this study, 113 SMEs listed on National Stock Exchange Emerge Platform are considered for the period from 2014 to 2018. Panel data regression is applied. The control group has been identified by using the propensity score matching approach. Qualitative information has been collected from the bank officials and the promoters of listed SMEs. Findings The study reveals that for meeting financial requirements, listed SMEs initially create current liabilities followed by usage of total reserves. Thereafter, they look for short- and long-term borrowings for further funding options. No significant change is observed in the financing pattern of listed SMEs as compared to their non-listed matched firms. The study suggests that no single theory, including pecking order theory or trade-off theory, could explain the behaviour of SMEs financing completely. Research limitations/implications The financing pattern of SMEs can be of great interest to various stakeholders such as government and lenders. As no significant boost is observed in debt financing post listing, this aspect needs to be evaluated by the stakeholders. Originality/value This study is significantly different from the existing studies, as it attempts to evaluate the impact of listing on overall financing pattern of SMEs in India. This is also one of the very few studies that uses both quantitative and qualitative information to examine the same.

A generalised regression neural network model of financing imbalance: Shari’ah compliance as the roadmap for sustainability of capital markets

The current study looks at the impact of compliance to Shari’ah principles on the capital structure for Malaysian firms. Examination of impact of compliance is based on the classification by the Securities Commission of Malaysia. Given that the literature on adjustment tends to ignore non-linear models, the current study utilises Generalised Regression Neural Network (GRNNs). Results are compared to conventional panel data regression models via performing a hold-out sample. Initial results confirm stability of the data allowing predictive ability. The results indicate that compliant firms tend to finance a greater portion of their financing imbalance via equities relative to non-compliant firms. This provides a strong indication towards compliant firms reducing overall risk taking where the financing pattern incorporates a greater aspect of risk sharing which is in-line with Shari’ah principles. In addition, two more factors are ranked as important in deciding compliant firms issue choice to resolve financial imbalance: profitability and size. The rest of the determinants have low impact on explaining net debt issues. Diagnostics for results provide evidence of lower RMSE and MSE for GRNNs for the training, testing and overall datasets. The potential benefit of this research allows managers and investors of Islamic capital markets to understand potential risk exposure and financing costs of compliant firms. Findings also provide a roadmap for development of a sustainable capital market model which has wider implications on a global scale.

ANALYSIS OF THE CO-MOVEMENT BETWEEN LOCAL GOVERNMENT DEBT RISK AND BANK RISK IN CHINA

We characterize the debt risk and bank risk of local governments in China with a dynamic factor model that decomposes 31 provincial data of China into country, regional, and idiosyncratic components. The result shows the presence of co-movement between local government debt risk and bank risk. The country, regional, and province factors explain 62%, 16%, and 22% of local government debt risk, respectively, and 28%, 8%, and 64% of commercial bank risk, respectively. Sub-sample analysis reveals that the country factor has become less volatile and its importance typically increases across all provinces after the reform of local government debt financing pattern (e.g., the introduction of Document No. 43).

Murabaha syndrome of Islamic banks: a paradox or product of the system?

Purpose This paper aims to explain the “murabaha syndrome” of Islamic banks. It further attempts to offer alternatives for the expansion of profit and loss sharing (PLS)-based financing. Design/methodology/approach Audited financial statements of 18 Islamic banks in the GCC countries are analyzed to assess the financing structures of banks. Moreover, additional data about financing pattern of Islamic banks in other Muslim majority countries are collected from the Islamic finance literature. A comparative analysis is offered to examine the financing structures of Islamic banks. Findings The paper confirms murabaha (mark-up financing) concentration of Islamic banks. About 90 per cent of the total financing are concentrated on murabaha, which is the result of existing institutional underpinnings. Islamic banks would logically be involved with PLS-based financing only limitedly unless the current governing institutions are changed. Entrepreneurs’ financing needs based on PLS contracts should be catered by venture capital, whereas micro-finance enterprises can meet the demand for funds of marginal clients. Practical implications PLS investment in the portfolio of Islamic banks would result in higher risk and uncertainty. Ambiguity, or its equivalent uncertainty, is prohibited in Islam. This is a dilemma which the existing literature does not sufficiently explain. Originality/value Ideally, Islamic banks should practice PLS-based financing; otherwise, their raison d’être would be difficult to justify. Islamic finance literature does not shed sufficient analytical lights in explaining Islamic banks’ preference of mark-up financing to PLS-based financing. Moreover, strategies to ameliorate this condition have largely remained unexplored.

A agenda econômica anacrônica do Governo Bolsonaro

<p>The article analyzes, in an exploratory manner, the likely impacts of the Bolsonaro Government's economic agenda on growth and social inclusion by examining it in the light of a global context characterized by financialization and a domestic scenario dominated by stagnation. To this end, it highlights the main axes of this agenda and their possible effects: first, a fiscal effect encompassing the pension and the tax reforms and the new tax regime, including in the latter a proposal for radical untying of some former obligatory spending from the government budget; second, macroeconomic and financial effects, including the independence of the Central Bank, foreign exchange liberalization and a new financing pattern in which the dismantling of public banks is part; lastly, productive and distributive effects, including trade liberalization, privatization, infrastructure policy, the new round of labor reform and the minimum wage policy.</p>